In his written assessment of the growth figures for the second quarter of 2026, Turkish Contractors Association, TCA, President M. Erdal Eren made the following remarks:
“According to Gross Domestic Product data for the second quarter of 2026, while the Turkish economy continued to grow, the picture reversed for our sector. After expanding uninterruptedly for 14 consecutive quarters, our sector contracted by 1.9 percent in the second quarter of this year.
In recent periods, we had drawn attention to the slowdown in our sector’s growth momentum and highlighted the issues awaiting solutions. As we also stated in the previous quarter, tight financing conditions, high borrowing costs and the cautious course of private-sector investments have been decisive factors in reversing the sector’s growth momentum.
In 2023 and the following years, reconstruction activities in the earthquake-affected region and publicly funded infrastructure investments provided strong support to the sector. However, as of 2026, this contribution has become relatively more limited and has proved insufficient to offset the slowdown in private-sector construction activity.
We have frequently brought to the public agenda the pressures created on the construction sector by budget restrictions on public investments, difficulties in accessing financing and high costs. The continued problems in these areas have caused our sector to contract after 14 consecutive quarters of growth.
Regulations and measures addressing these issues will enable our sector to return to positive growth and continue contributing to the growth of the national economy.”
